Nokia asks Delhi High Court to release factory seized in tax dispute

HELSINKI Thu Nov 21, 2013 3:45pm IST

General view of the Nokia flagship store in Helsinki July 18, 2011. REUTERS/Jussi Helttunen/Lehitikuva/Files

General view of the Nokia flagship store in Helsinki July 18, 2011.

Credit: Reuters/Jussi Helttunen/Lehitikuva/Files

Related Topics

Stocks

   

HELSINKI (Reuters) - Nokia(NOK1V.HE) has asked the Delhi High Court to help release its Indian factory after its seizure by the local tax authorities, the Finnish firm said on Thursday as it seeks to resolve the tax dispute ahead of the sale of its mobile phone business to Microsoft (MSFT.O).

Nokia said it did not expect the dispute to affect its 5.4 billion euros deal with Microsoft, although it was prepared for the possibility that the Chennai plant, one of its biggest phone-making factories, will not be transferred to the U.S. company in time for the sale, which is due to close in the first quarter of next year.

If the seizure is still in place when the Microsoft deal is finalised, Nokia could briefly operate the plant as a contract manufacturer for Microsoft, according to sources close to the company.

Nokia has been in disagreement with the Indian authorities over an income tax bill of 20.8 billion rupees, one of several tax disagreements involving foreign companies in India.

In a statement, Nokia said it wanted the assets to be released by December 12. The sources said the court will hold a hearing on November 28.

($1=0.7428 euros) ($1=62.5450 rupees)

(Additional reporting by Devidutta Tripathy in New Delhi; Editing by Greg Mahlich)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
dizzyingdreamer wrote:
I dont know why when tax authorities in India demand correct taxes it is made out to be regressive, whereas when the same is done by the US govt the same cos pay up meekly.

Nov 21, 2013 6:04pm IST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage